Daijiworld Media Network - Mumbai

Mumbai, May 5: In a landmark development for India’s housing finance and debt markets, the country’s first mortgage-backed Pass-Through Certificates (PTCs) were officially listed on the National Stock Exchange (NSE) on Monday. This move is set to enhance liquidity and broaden investment opportunities in the housing sector.

The PTCs, structured by RMBS Development Company Limited, are backed by a pool of housing loans originated by LIC Housing Finance Limited. The issue size was Rs 1,000 cr, consisting of 1,00,000 PTCs with a face value of Rs 1,00,000 each. The offering was fully subscribed, indicating strong investor interest.

This issuance is the first of its kind in India, with the coupon rate discovered through the NSE’s Electronic Book Provider (EBP) platform. The final coupon rate was set at 7.26% per annum, and the instruments have a tenure of nearly 20 years. With a top-tier AAA(SO) rating from both CRISIL and CARE Ratings, these PTCs are issued in dematerialised form, allowing them to be traded on the secondary market.

The listing ceremony was graced by M Nagaraju, secretary, department of financial services, ministry of finance, who marked the occasion by ringing the ceremonial bell. In his address, Nagaraju highlighted the vital role of the housing sector in the Indian economy, emphasizing its strong linkages to industries like infrastructure.

He stressed that instruments like these PTCs could act as a crucial bridge between the housing finance market and the broader debt market, boosting liquidity and supporting the growth of the housing finance ecosystem. The event was attended by top officials from banks, housing finance companies, and other financial institutions, underscoring its significance in deepening the securitisation market in India.